Is This The Reason MoviePass Removed Select AMC Theaters?
MoviePass may be playing hardball with AMC Theatres. On Thursday,it was reportedthat the buzzy subscription-based movie service was pulling coverage from select AMC locations, including big market theaters like the Empire 25 in New York City, the Universal City Walk, AMC Loews Boston Common and the AMC Century Plaza.
It had many questioning whether this spelled the beginning of the end for the rapidly growing but questionably sustainable company. But it seems like this move was less of a troubling stumble and more of a measured strategy on MoviePass’s part to negotiate with a wary collaborator.
But there’s a reason that these AMC locations were being singled out, apart from the higher movie ticket prices at these theaters that were previously posited. MoviePass and AMC have been at odds since the subscription service first dropped its prices down to $9.95 a month, which AMC called “unsustainable and only sets up consumers for ultimate disappointment down the road if or when the product can no longer be fulfilled.”
“We’re spending millions and millions of dollars every week at [the top three chains]. Those customers are spending on average $13 on popcorn and soda, which is more than double the norm, because they’re not shelling out money for their ticket.”
While Lowe said that independent theaters have been more open to the idea of making a deal with MoviePass, larger chains like AMC have been holding out. But this bold move to take AMC’s biggest chains out of its service puts the ball in MoviePass’s court. The company has reportedly already approached AMC with a deal, according toDeadline. The outlet reports that MoviePass has asked AMC for a slice of admissions and concessions, which is around $2 million a week per MoviePass insiders. MoviePass is seeking a $3 cut on AMC tickets that it covers, plus 20% of concessions. But for now, it seems that AMC chief Adam Aron is holding out on negotiating with MoviePass, telling investors in November that while they’re happy to accept the $11.88 per ticket that MoviePass is paying them on average, “AMC has absolutely no intention, I repeat no intention, of sharing any – I repeat, any, of our admissions revenue or our concessions revenue with MoviePass.”
